Optical Distortion, Inc. case
Daniel Garrison, the president and CEO of Optical Distortion, is thinking about to bring the new and only product, a contact lens for chickens, to the markets. Working with Ronald Olson, the marketing vice president, Garrison is currently developing a marketing plan for ODI’s new product. ODI is planning to introduce these contact lenses to at least one region at the beginning, hoping to reach national distribution in a couple of years. There are three different sizes of the chicken farms that the company faces when they finally introduce the lens, namely small farms (10,000 or fewer birds), medium farms (10,000-50,000 birds), and large farms (over 50,000 birds).
Compared to the debeaking operation, ODI
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Thus, the total cost of a pair ODI lenses is $0.08223. Due to the underestimation of the produce cost for ODI, the expected value for the farmer using the ODI lenses would be overestimated. Once the ODI set up the price more than $0.2940, the expected saving for the farmer who uses the ODI contact lenses would be negative, which means it is less likely to bring the chicken lenses to the poultry industry. In another words, the expected value of the lenses for the farmer could be definitely lower than $0.2140 per hen according to the fluctuation on lenses price.
Table 3
Depending on the evaluation, we would say that it is easy for the company to sell the lenses to the farmers for the following reasons. One is the feeding efficiency. The ODI lenses will be able to permit the farmers to reduce the depth of feed in troughs by at least 3/8’’, which means the farmers can save the considerable annual feeding cost, especially for the large flocks. If the farm breeds 50,000 birds, the 3/8’’ feeding saving would be worth $3,828. In addition, the ODI lenses would help to avoid the debeaking operation, in which chicken were subjected to considerable trauma resulting in the temporary weight loss and unproductivity. Furthermore, the significantly reduced cannibalism is going to reduce the flock mortality resulting in the ODI lenses attractive to the farmers. In the other hand, the price strategy is going to
Kerin, R. A., Hartley, S. W., & Rudelius, W. (2013). Marketing. (11th ed.). New York, New
Within Kayem Foods, Matt Monkiewicz the director of marketing is facing a critical decision that could have a big affect on sales and market share. Al Fresco chicken sausage is one of their products that has recently gained majority market share in its category. The budget for which is dedicated towards the marketing of Al Fresco has been doubled due to the growth of the brand. What Matt needs to do is decide whether to pay for another buzz marketing campaign or to use more traditional marketing strategies suggested. Matt believes the original buzz marketing campaign had a significant part in building the brand to the market leader but no definite evidence of this being true. He must review the costs of each strategy
Contact-lens magnates recognize a dual-segmented product space – private practice (i.e., doctor/ophthalmologist supply) versus retail (i.e., health + beauty, pharmacy).
The second alternative would be to direct their resources to the pest control operators. The projected annual sales increase for this market is 8 percent, which is a little less than that of the consumer market. Zoecon had their product Gencor (hydroprene) well received by PCO’s in 1984, therefore the consumers will have a positive view of a new product line from the same brand. A yearly investment of $500,000 per year above the 27% of sales will be budgeted for trade advertising and sales efforts to accelerate sales.
Based on the market trend, it is likely the demand for the disposable lens will increase at the expense of conventional lens. Therefore, the hope to increase the sales through the distributors and the introduction of ‘frequent flyers’ scheme is unlikely to yield much result.
Hibiscus: According to this case, there is no local market for this product at all. And TFI does not believe that the market for this product has changed substantially (which means it still has no local market now). Therefore, we cannot predict the reliable and realizable market value for hibiscus plants that TFI has. Since we cannot calculate its market value, we should simply record the cost for hibiscus plant that TFI has, which is 500*10=$5,000.
1 Farmers may not totally understand the product value. They may not easily accept new product that they have never heard about.
Optical Distortion Inc. is a small new company, not yet in business, with a cash asset of $200,000 and a patent for an innovative new product (the only one) which is a contact lens designed to impair the eyesight of chickens. . These lenses are used instead of debeaking. Lensed chickens are more likely to survive. They also eat more efficiently than debeaked chickens. The key issue facing ODI is "How to market these lenses?". The analysis in this paper provides recommendations for ODI on their marketing and pricing strategy to launch this new product.
In 2002, Leitax had suffered through poor planning of 3 camera models: the launch of one camera delayed (cost: $19.5 million), another outsold its inventory (costs: $4.5million) and a third model reported sluggish sales ($2.5million). To compensate, Leitax extended the life of an existing model and made a mad scramble to find product and customers but the most costumers preferred to wait for the delayed camera. These
ODI Managers believe direct sales to chicken farms are the best answer. Salesforce will promote the product targeting first ¡§opinion leaders¡¨ from farms with more than 10,000 chickens, who tend to be somewhat less quick to adopt, but are more likely followed by others. One strategy for ODI is to identify the farmers who are perceived as opinion leaders.
The study case further reveals that Marilyn takes a trial an error approach to promote her products. This approach is very time consuming and not an effective strategy for distributing perishable products or limited time and energy.
3- As we can see the company would loss 0.52 cent per 1 kg if it decides to sell at 6.85 price and allocates the fixed expenses at 1.20 per 1 kg.
Armstrong, G. Brown, L. Burton, S. Deans, K., & Kotler, P. (2010). Marketing (pp. 4-40). New South Wales: Pearson
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